At 2PM today, Philip Lowe; Governor of the Reserve Bank of Australia announced that the Cash Rate would remain at 4.10%, and the interest rate paid on Exchange Settlement balances unchanged at 4.00%.
The Reserve Bank of Australia have conveyed their intentions to take necessary measures to bring inflation back within the target range of 2-3%. It is predicted that it may take until at least mid-2025 for these goals to be achieved.
Despite the rising cost of living for Australians, a series of interest rate hikes from 2022 to 2023 has brought about several positive developments in our economy. Currently, the unemployment rate is at its lowest point in nearly half a century, wages are on an upward trajectory, and housing prices are gradually declining. For those who were prepared for these rate increases, the current market conditions may offer an opportunity to explore their next property investment.
Seeking the guidance of an experienced mortgage broker for insights on interest rates, financial products, and navigating economic uncertainties can be advantageous. Staying informed about the cash rate, available cashback incentives, and the latest updates in the financial sector is crucial to ensuring you are in the best possible position. It’s a good time to consider a review of your home loan if it’s not already on your radar.
Homeowners are anticipating the conclusion of their fixed-rate mortgages and the inevitable switch to variable rates. Recently, refinancing has emerged as a notable trend, with lenders and banks actively competing for business during this volatile phase.